Shanghai Luxury Property Immune to Downturn?
According to an “expert” in Shanghai, the luxury real estate sector in Shanghai will be the only market in the world that will continue to grow in value this year. Despite the fact that Hong Kong luxury real estate has seen massive falls in value, Dubai’s luxury market has all but collapsed and in 2008, London saw the biggest fall in luxury property prices for years, with the trend continuing downwards.
Shanghai will be completely immune apparently.
Despite a slowing market, luxury home prices in Shanghai are likely to remain stable or grow in the second half of this year mainly due to the scarcity of land downtown, according to expert opinion in the Shanghai Daily.,says Asia Property Report
They are quoting the opinions of David Chen, a senior official at CB Richard Ellis and Charles Zhang, of Colliers International.
I really do wonder why these so-called professional bodies continue to repeat this mantra that property can only go up in value. Colliers put out a report last year that stated that Dubai property values had only fallen in value by 8% – only for everyone to discover that this was nearer 60%. Even the China Daily reported last year that prices in Shanghai’s luxury sector were dropping amid falling house sales across the board. The sooner we have some professionalism and honesty in the luxury real estate sector, the better.
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This is quiet unbelievable that they will be immune to the financial crisis, pity that this won’t happen around the world.
Yes – “unbelievable” is the word I was going for